Don't Ignore This Chart!

Xerox Rises from the Ashes

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I was running through some charts today and came across and interesting setup - in Xerox of all names. It has been a long time since Xerox crossed my path. The company provides document management solutions with both hardware and services. It is a $7.2 billion company and part of the S&P 500.  Based on the chart, things may be looking up. The stock broke out with a gap and surge in January and hit a 52-week high in February. After a 30+ percent gain, the stock was ripe for a correction and it fell back to the 6.90 area in April. Notice that a falling channel of sorts formed and the stock retraced around 38% of the prior surge (sans spike). There are signs that this correction may be ending because MACD turned up the last few weeks. A resistance breakout would complete the reversal and argue for a continuation of the bigger uptrend. Note that Xerox is a low-priced stock and this means it carries above average risk. 

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Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan 
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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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